Exhibit 99.1
GUESS?, INC. NEWS RELEASE
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FOR IMMEDIATE RELEASE Contact: Carlos Alberini
President & Chief Operating Officer
(213) 765-3582
Joseph Teklits
ICR
(203) 682-8258
GUESS?, INC. REPORTS MAY COMP STORE SALES UP 20.0%; RAISES Q2 EXPECTATIONS
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- MAY TOTAL RETAIL SALES INCREASED 26.8%
- COMPANY EXPECTS TO EXCEED Q2 REVENUE AND MARGIN GUIDANCE
LOS ANGELES, CA, June 1, 2006--Guess?, Inc. (NYSE:GES) today reported retail
sales for the month of May which ended on May 27, 2006. Total retail sales for
May were $50.3 million, an increase of 26.8% from sales of $39.7 million for the
month ended May 28, 2005. Comparable store sales for the May period increased
20.0%.
The retail sales and margin performance for the 2006 second quarter-to-date has
been stronger than the Company anticipated. Also, the Company's worldwide
licensing and European businesses have performed ahead of expectations
quarter-to-date. Based on these trends, the Company now expects total revenues
for the second quarter to increase nearly 25% from last year's levels, versus
previous expectations for an increase in the high teens. The Company also
expects gross margins and SG&A expense performance for the period to improve
from previously expected levels.
The net impact of the changes in guidance should result in a net earnings
improvement over previous guidance for the second quarter in the range of $2.5
million to $3.2 million or $0.05 to $0.07 per share.
Guess?, Inc. designs, markets, distributes and licenses a lifestyle collection
of contemporary apparel, accessories and related consumer products. At May 27,
2006 the Company owned and operated 319 retail stores in the United States and
Canada. The Company also distributes its products through better department and
specialty stores around the world. For more information about the Company,
please visit www.guess.com.
Except for historical information contained herein, certain matters discussed in
this press release, including statements concerning the Company's future
prospects and guidance for the second quarter of 2006, are forward-looking
statements that are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are only
expectations, and involve known and unknown risks and uncertainties, which may
cause actual results in future periods to differ materially from what is
currently anticipated. Factors which may cause actual results in future periods
to differ materially from current expectations include, among other things, our
ability to anticipate consumer preferences, effectively operate our retail
stores, effectively manage inventories, successfully execute our strategies,
including our supply chain and international growth strategies, and general
economic conditions and consumer confidence. In addition to these factors, the
economic and other factors identified in the Company's most recent annual report
on Form 10-K and other filings with the Securities and Exchange Commission,
including but not limited to the risk factors discussed therein, could cause
actual results to differ materially from current expectations.